Russian War Against Ukraine: Energy Dimension | DiXi Group Alert – weekly review

Dear subscribers! Due to the suspension of funding for all US foreign assistance programmes for 90 days, the weekly review ‘Russian War Against Ukraine: Energy Dimension’, which used to be prepared within the framework of the USAID Energy Sector Transparency project, will be temporarily published in a limited format – as a summary of the main events in the sector.

At the same time, DiXi Group NGO has prepared a survey for subscribers to receive feedback on the priority thematic sections of the review that should be continued to be covered. This will allow the team to match the interests of readers with available resources and develop an optimal format for the weekly review during the period of suspension of USAID support.

We would like to thank our audience for their continued interest in the weekly review ‘Russia’s War on Ukraine: The Energy Dimension’. We would also like to assure you that we will continue to look for opportunities to develop this information and analytical product in order to meet the interest of our audience in a timely and high–quality manner.

Survey in English (for international readers)

February 24 – March 2

During the three years of full–scale war, Russia carried out more than 30 massive attacks on Ukraine’s energy infrastructure and occupied generation facilities with a total capacity of 18 GW; last year, 10 GW of power generation was lost or damaged as a result of Russian strikes, Energy Minister Herman Halushchenko said.
Over six days of the week (February 24–28 and March 2), electricity supply was restored to 158,928 consumers – Ministry of Energy.
RDNA4: As of December 31, 2024, the total losses of the energy and extractives sectors were estimated at 20.51 billion USD (two times the amount compared to last year’s report), revenue losses constituted 72.3 billion USD (+18.3 billion USD), while total sector recovery needs were estimated at 67.78 billion USD (+20.1 billion USD).
On March 1, the media reported that the IAEA observers at the Zaporizhzhia Nuclear Power Plant (ZNPP) were rotated through the occupied territories of Ukraine. Ukraine’s Foreign Ministry condemned the event as a violation of Ukraine’s sovereignty and territorial integrity by IAEA staff under pressure from the Kremlin, which blocked the mission’s departure through Ukrainian–controlled territory.
As of February 27, works to eliminate the consequences of the attack on the New Safe Confinement (NSC) at the Chornobyl Nuclear Power Plant (ChNPP) continue. No deterioration of the radiation situation at the NSC site and ChNPP was recorded.
On February 28, the Cabinet of Ministers approved a resolution governing the implementation of the public investment management reform at the state, regional and local levels. The document regulates the development and monitoring of a medium–term plan for priority public investments, the preparation of public investment projects, their evaluation and implementation at all governance levels.
The Ministry of Energy, in cooperation with Ukrenergo and the Danish Energy Agency, developed a mobile application that informs users about the state of the grid and the availability of electricity in each region, as well as provides advice on how to help maintain balance in the power system.
Within the framework of the Winter eSupport program, 14.4 million Ukrainians applied for a one–time allowance of UAH 1,000; utilities were the most popular category of expenses under the program, accounting for UAH 4.9 billion (57% of all expenses).
There were no electricity exports from Ukraine in the reporting week, while imports increased by 16% (to 85.8 GWh).
The monthly Base DAM index (bilateral contracts market) for March was at 5,611.1 UAH/MWh (+3.6% compared to the February index).
As a result of warming in some regions and related reduction in consumption, the average hourly price of electricity on the day–ahead market (Base DAM index) decreased to 6,019.5 UAH/MWh (–2%) over the week.
During the reporting week, physical imports of gas amounted to 65.9 mcm from Hungary (+0.8% WoW), 68.8 mcm from Slovakia (–20.3% WoW), and 21.3 mcm from Poland (+73.2% WoW).
As of March 1, 1.6 bcm of gas was accumulated in Ukrainian underground storages (5.2% of the total working volumу), withdrawals amounting to 364.2 mcm (–24.3% WoW).
Ukrtransgas (the gas storage operator) purchased 32.2 mcm of imported gas (+35.7% WoW) at a weighted average price of 26.4 UAH per cubic meter excluding VAT (–15.1% WoW).
The European Commission announced financial support for gas purchases through the Ukraine Facility, which will help replenish stocks and ensure reliable supply, contributing to the energy security of both Ukraine and wider region; this step is part of a new support package that also includes the integration of the Ukrainian electricity market into the EU by spring 2027 and acceleration of investments in renewable energy.
Italy signed an agreement on a new contribution to the Ukraine Energy Support Fund in the amount of EUR 13 million.
Japan will provide the Government of Ukraine with a 58 million USD grant to implement the fourth phase of the Emergency Recovery Program; the funds will be used for humanitarian demining, energy, water supply, public health and security.